Three energy magnates sign P184B LNG deal

Three energy magnates sign P184B LNG deal

Three energy giants are establishing a joint deal for the country’s first and largest liquefied natural gas (LNG) facility in Batangas province, valued at Php 184.89 billion.

MERALCO PowerGen Corporation (MGen), San Miguel Global Power Holdings Corporation (SMGP), and Aboitiz Power Corporation worked together on this deal to amplify the promotion of cleaner energy in the Philippines, said Inquirer in its report. 

Pursuant to the agreement, MGen and AboitizPower would invest in SMGP’s Ilijan gas-fired power plant with a capacity of 1,278 megawatts (MW) and a new facility with 1,320 MW capacity, expected to be completed by the end of 2024.

The three energy firms would then purchase 100% of the LNG import and regasification terminal from Linseed Field Power Corporation, a local unit of Atlantic, Gulf & Pacific Company, an infrastructure firm that secured the country’s first LNG cargo delivery in April of last year. 

According to the three firms, the facility would be utilized to store, receive, and process LNG for the two other power plants that would supply electricity to Luzon.

SMGP Chair and President Ramon Ang said that this collaboration was a breakthrough in the energy future, guaranteeing reliable and competitively-priced electricity for Filipinos.

Once fully operational, the facility would supply the country with a generation capacity of around 2, 500 MW.

AboitizPower Chair Sabin Aboitiz said that renewable energy (RE) and LNG are needed to achieve a well-balanced energy transition.

And with the looming threat of El Niño, industry stakeholders expected the contribution of the Ilijan plant to reach the demand. 

The facility halted its operations in June 2022 due to the suspension of supply deliveries from the Malampaya gas field but resumed its operations a year later after the LNG delivery in April 2023.